Nifty Holds Above Neutral Line Amid RBI Rate Decision & Volatility

Nifty managed to close above its neutral line on Wednesday, with August 2026 futures settling at a premium following the Reserve Bank of India’s decision to maintain its benchmark repo rate. The index experienced volatility throughout the trading session before staging a late recovery.

• Nifty August 2026 futures (LTP): 24637.00
• Spot closing: 24624.65
• Premium over spot: 12.35 points
• RBI Repo Rate: 5.25% (unchanged)
• HSBC India Services PMI Business Activity Index (July): 53.3 (from 57.4 in June)

The Reserve Bank of India kept its benchmark repo rate unchanged at 5.25 per cent, maintaining a neutral policy stance, a move largely in line with market expectations. Despite a positive opening, the Nifty saw significant losses in the second half, influenced by India’s newly introduced closing auction mechanism for derivative-linked stocks.

Further dampening sentiment, India’s services sector growth lost substantial momentum in July, with the HSBC India Services PMI Business Activity Index falling to 53.3 from 57.4 in June due to softer demand. However, a sharp fall in oil prices later helped alleviate inflation and interest rate concerns, contributing to Nifty’s recovery.

Sectoral Shifts and F&O Activity

Traders actively built positions in Auto, Metal, and Realty stocks, indicating positive sentiment in these segments. Conversely, selling pressure was evident across Media, Healthcare, and IT sectors.

• Top F&O Gainers: Hindustan Zinc, Jubilant Foodworks, Bosch
• Top F&O Losers: Kalyan Jewellers India, Multi Commodity Exchange of India, Marico

In the index option segment, the maximum open interest (OI) continues to be concentrated between 24900 and 25100 for calls and 23900 and 24100 for puts. This range indicates the market’s expected trading boundaries.